The long-awaited announcement about Category 2 E-Rate is finally here!!!!

The Federal Communications Commission has in fact made extensive
improvements to Category 2 budgets, but has chosen not to implement them
until FY2021 in an effort to not delay the opening of the FY2020 filing
window or FY2020 funding commitments.

The information available now is attached and I expect there will be
further clarification as USAC implements the Order. Here are some
highlights....


*FY2020*

FY2020 will in effect be treated as a sixth year of the initial five-year
budget term (FY2015 - FY2019 becomes FY2015 - FY2020).

A prorated portion of Category 2 funding will be available to all
applicants in FY2020, regardless of whether or not they spent all of their
initial five-year budget. Unused C2 budgets from the FY2015 - FY2019 five-year
cycle will be available for FY2020, plus a 20% increase in the C2 budget
multipliers as a one year additive.


*The projected amount (based on an unofficial estimated 2.1% inflation
adjustment) for each school for FY2020 is:*

*$195.63 budget multiplier x school building enrollment, less any committed
C2 funding beginning in FY2015 (pre-discount amounts) *


*estimated funding floor  = $11,998*


There are no significant changes to how you should apply for support for
Category 2 services in FY2020 (except if you thought you were out of C2
monies you just received a 1-year windfall!). Budgets will continue to be
school building specific for FY2020.

This is a one-time bump in available funding, so please use it!!!!



*FY2021 - FY2025*

This will be a new five-year budget term.

   - All applicant budgets will be reset beginning in FY2021
   - All applicants will begin a new fixed five-year budget cycle and may
   submit applications in any funding year during the five-year cycle
   - Budget calculations will be district-wide rather than at the school
   entity level and the district will have the flexibility to allocate
   Category 2 funding among its schools as it sees fit
   - In order to calculate their five-year budget, applicants must validate
   their student counts for each school in the district in the first year the
   applicant applies for Category 2 support during the relevant five-year cycle
   - Applicants, if they choose to do so, can update their student counts
   in subsequent funding years to reflect, for example, an increased budget
   due to increased student enrollment
   - The funding floor for FY2021 - FY2025 is increased to $25,000 and it
   will adjust for inflation for each new five-year cycle
   - The budget multiplier for FY2021 - FY2025 has been modified to $167
   per student and it will adjust for inflation for each new five-year cycle
   - *Your FY2021 - FY2025 district-wide budget calculation will be the
   greater of $167 per student or $25,000 per school*


_________________________________________________

Anne Perloff
Maine State E-Rate Coordinator for Schools
Networkmaine, University of Maine System US:IT

Web: erate.networkmaine.net

Email: [log in to unmask]

Phone: 207-581-3584

Mail:
Networkmaine
5752 Neville Hall, Room 255
Orono, ME 04469-5752